This file photo shows a worker cleans a machine at a nail factory owned by Myanmar Region Industries at the Hlaing Thar Yar Industrial Zone, in Yangon. Pic: Aye Zaw Myo

IN A world trade environment red in tooth and claw, there is one area where Myanmar has begun to hammer the opposition – in nail production.

Nail producers in Hlaing Tharyar Industrial Zone are reporting that Myanmar nails are now beating those produced in China – and they expect to maintain their lead until at least the end of the year, says the manager of Myanmar Region Industries, U Moe Hein.

“Now we are making a profit because raw materials prices are 45 percent lower than in August. The selling price has also dropped by 18pc from last year”.

Last year Chinese nails held down 80pc of the market because they were cheaper – and shinier – than Myanmar nails. But now, Myanmar is clawing back its share.

In Yangon this week, Chinese nails costs K1700 per viss, while Myanmar nails were K1680 (1 viss equals 1.6 kilograms or 3.6 pounds).

The main reason for the price increase in the Chinese product is transportation costs, which have risen by 25pc since Cyclone Nargis, U Moe Hein said, adding: “After Cyclone Nargis, we got 20 hours of electricity, instead of the eight hours we used to get before that. So we could save the cost of generator fuel, which also helped to bring our prices down.”

Late last year, Myanmar Region Industries stopped production when the price of iron topped U$1000 per tonne. But when prices almost halved to $550 per tonne in July, the company resumed production.

Myanmar nails are harder than Chinese nails, and come in sizes more convenient for the user. And though Chinese nails are shiny, the quality is not so good, says Ma Ni Ni, owner of ALH hardware store at Saw Bwar Gyi Gone, a construction materials trading area in Insein township.

Another hardware store owner, U Hu Sein, says sales are best when raw materials prices stay stable. He expects nail prices to be steady until the end of the year.